DIPP proposes composite caps to streamline foreign invest regime

Tags: News
Seeking to streamline the foreign investment regime, the commerce and industry ministry has proposed to introduce a composite cap which will include FDI, FII and other instruments in various sectors.

In a draft cabinet note, which was circulated for inter- ministerial consultations, the Department of Industrial Policy and Promotion (DIPP) has said that under the present structure, a change in the FII/FPI investments can lead to change in control and ownership of a company.

The proposals seeks to do away with the different kinds of overseas investment and bring about clarity in the norms.

The move would help in removing ambiguity on application of sectoral caps, conditionalities and approval requirements in different sectors and bring simplification in the foreign investment policy.

It would also provide Indian firms and investors an option of category of investments between FDI, FPI (FII, Qualified Foreign Investors), NRI and Foreign Venture Capital Investor.

"The proposal if approved by the Union Cabinet would help in improving ease of doing business in India," sources said.

Further, it has proposed that over 24 per cent FPI/FII in existing pharmaceutical companies would be subject to government approval and compliance of performance linked conditionalities.

As per the proposal, the DIPP has proposed a composite foreign investment cap (FDI + FPI (FII, QFI) + NRI + FVCI) in sectors including agriculture, tea, mining, broadcasting, media, airports, retail (single brand

and multi-brand), e-commerce, asset reconstruction companies, banking, commodity exchanges and insurance.

FII inflows into the country's capital market so far this year stood at $ 23 billion. On the other hand, India has received $ 24.29 billion worth of FDI.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Not the best gift for Modi, but bypoll result may not affect BJP in long run

    In India’s hardball political landscape, there is little place for anyone to rest on their laurels, not the least if you are a successful prime mini

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Scientific and field level know-how

Recently addressing the scientists of the Indian Council of Agricultural ...

Rajgopal Nidamboor

How synchronous empathy helps us

All of us are in an undulating ‘hypnotic’ state. A ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture